Berkshire Hathaway posts 46pc jump in profit

The Warren Buffett-led conglomerate has impressed with its latest earnings.

Berkshire Hathaway, the conglomerate led by famed investor Warren Buffett, posted a 46pc jump in quarterly profits that beat analyst forecasts and were lifted by a strong performances from its rail and utility businesses.

Berkshire reported net income of $4.54bn (£3bn) for the second-quarter, up from $3.11bn in the same period a year earlier. Revenues rose 16pc to $44.69bn.

Operating earnings surpassed analyst estimates with Berkshire – which has interests in a range of sectors from insurance to retailing and is based in Omaha, Nebraska – having benefited from growth in the wider US economy.

The Burlington Northern Santa Fe railroad business saw a 10pc increase in profit to $884m, boosted by growing demand for coal and consumer and industrial products transportation.

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Because of the conglomerate’s wide range of interests in the US, Berkshire’s results are seen as being relatively-closely linked to the health of the American economy, and its latest numbers are thought to reflect an improvement in broader growth.

The U.S economy expanded by the equivalent of 1.7pc in the second-quarter. That beat analyst estimates and was an increase on the 1.1pc growth seen during the first three months of the year, although the GDP figure for the first-quarter was revised down from a previous estimate of 1.8pc.

Mr Buffett, who will be 83 later in August and is chairman and chief executive of Berkshire, is the world’s fourth-richest man.

He is called The Sage of Omaha for his successful investment track-record. As a result, Berkshire’s annual shareholder meetings, which are held in the US city, attract investors from around the world.

Berkshire itself is known for its high-profile deal-making.

Last month, the company – along with 3G Capital – completed a deal to take baked beans maker HJ Heinz private. Berkshire spent £12.3bn on the transaction.

The group started life as a textile manufacturer but has since grown into a huge conglomerate under Mr Buffett, owning newspapers and even a private jet firm.